Preparing for Unfair Dismissal Reform

How Employers Can Avoid Costly Claims Under Changing Employment Law

Dismissal has never been entirely risk free for employers. However, upcoming changes to unfair dismissal law are expected to significantly increase the importance of following fair and compliant processes from the outset.

For many organisations, particularly in sectors already facing workforce pressures such as care, relying on informal approaches or assuming probation periods provide protection may no longer be enough.

With reforms approaching, employers should now be reviewing how dismissal decisions are managed across their organisation.

What Is Changing Under Unfair Dismissal Law?

From 1 January 2027, the qualifying period for unfair dismissal protection is expected to reduce from two years’ service to just six months.

While that date may appear some way off, the practical impact will begin much earlier.

Employees hired from 1 July 2026 will reach six months’ service by the time the new rules come into effect. This means employers will need to ensure dismissal decisions from that point onwards can withstand scrutiny.

Why This Matters for Employers

Historically, some employers have relied on probation periods or shorter service lengths when managing difficult employment situations.

However, under the new framework, employers are likely to have far less flexibility.

Without:

• A fair reason for dismissal
• A fair and documented process
• Evidence of reasonable decision making

The risk of claims is expected to increase significantly.

This means organisations may need to rethink how they manage performance, conduct and capability concerns from the earliest stages of employment.

Why Informal Approaches Create Risk

In many organisations, dismissal decisions are still handled informally, particularly during probation periods.

However, informal processes can quickly create problems where there is:

• Limited documentation
• Inconsistent decision making
• Poor communication
• Lack of evidence showing fairness

Under changing employment law, these gaps could leave employers increasingly exposed to legal challenge.

What Should Employers Be Doing Now?

Employers should use the time before the reforms take effect to review whether their current processes are robust enough.

Key areas to consider include:

• How probation periods are managed
• Whether managers understand dismissal procedures
• How performance and conduct concerns are documented
• Whether policies are up to date
• How consistently processes are applied across teams

Taking action now can help reduce future legal and operational risk.

Why Early Preparation Is Important

Employment law reforms rarely become an issue overnight. Risk often develops gradually as outdated processes continue without review.

By preparing early, employers can:

• Reduce the likelihood of costly claims
• Improve consistency across the organisation
• Support managers more effectively
• Strengthen employee relations processes
• Increase confidence in decision making

This is particularly important in sectors such as care, where operational pressures can make difficult conversations harder to manage.

Join Our Upcoming Webinar

To help employers prepare for these changes, our trusted partner will be hosting an upcoming webinar:

Preparing for Unfair Dismissal Reform: How to Avoid Costly Claims

📅 4th June
🕑 2.00 pm

The session will provide practical guidance on managing dismissals fairly and compliantly under changing employment law.

Topics will include:

• Upcoming unfair dismissal reforms
• Managing probation periods effectively
• Reducing legal risk
• Documentation and process best practice
• Supporting managers with difficult decisions